Sustainable Business

‘As we reshape the business, it’s evident that sustainability needs to take centre stage in our thinking at all levels, from the Board to the front line.’

It’s a fundamental part of the responsible management of any business. It’s what all our stakeholders, from customers to investors to our own people, demand. And rightly so.

This isn’t about paying lip-service to the notion of responsible business; it’s about being a business that we are proud to be a part of, one which enables us to live our purpose: to create a safe and secure world, together.

Last year we developed an ESG strategy, and this year we are building on it. We are still at the start of our journey but we’re developing the targets that we want to be measured by as we make progress along the route.

Our commitment to addressing the global climate crisis by delivering net zero emissions by 2040 is just one example. One thing is clear, there is no chance that we will turn back.’

David Lockwood
Chief Executive, Babcock International Group

Sustainability is an Integral Part of our Business

We have made progress in the development of our environmental, social and governance (ESG) strategy. We recognise it is increasingly important to all our stakeholders, not least our people and our customers.

Our activities have a significant impact on society and the environment and sustainability is now an integral part of our corporate strategy and how we do business. You can see more about how our new approach to sustainability, driven by our corporate purpose, is central to our business model and wider strategy on these pages

This year we have set out our material issues and explained why they matter.

We have a number of programmes which support and make a valuable contribution to the UN SDGs.

Incorporating sustainability into our everyday operations is key to ensure successful, long-term delivery outcomes and we have a responsibility to leave a positive impact on our environment.

In FY21, we reset and reassessed our environmental performance. We have worked hard to develop and enhance our previous environmental, energy and carbon strategies and we are working to establish more ambitious targets, with detailed roadmaps, implementation plans and initiatives.

Clean inputs

We use innovative solutions to reduce our energy needs, while focusing on cleaner energy and other natural resources. We recognise that working sustainably makes strategic business sense.

Responsible consumption

We take our responsibility for managing the impact of our operations and those of our supply chain on the environment seriously. We integrate environmental sustainability into our programme design, optimise use of resources and minimise waste through re-use and recycling.

We rely on the support and collaboration of local communities, small businesses and our people where we live and work to continue delivering critical support to customers for whom failure is not an option.

The health and safety of our employees is of paramount importance, as is the need to continually invest in them to ensure that we have the right people in place now and in years to come. We are also committed to providing a fair, equal and inclusive environment for all of our people. This is all augmented by our STEM ambassadors who run outreach programmes in local schools and colleges to engage and inspire the next generation.

People and potential

The safety of our people is our priority, both physical and well-being. We encourage a diverse and inclusive employee base where each person feels respected and able to fill their potential.

Community engagement

Our partnership with the communities in which we operate is at the core of Babcock’s business. We play an active part in our local communities to enhance development and inspire the next generation.

We are committed to conducting business honestly, transparently and with integrity. As well as being the right and proper way to behave, this will ensure we uphold high ethical standards across the Group and support our long-term success.

Our Group-wide Code of Business Conduct lays out our policy of strict ethical conduct, highlighting the fundamental importance of conducting all business activities to the highest standards of honesty and integrity.

Commercial integrity

We believe that ethical behaviour underpins our sustainability activities. We establish robust processes and controls to identify opportunities and manage corporate risks. We understand that our reputation and good name are amongst our greatest assets, which could easily be lost by actual or suspected unethical behaviour.

Diverse and robust supply chains

Diverse and robust supply chains enable us to provide quality and timely delivery. We work closely with our suppliers to develop and deliver innovative solutions that drive value to our customers, shareholders and communities.

Our Business

We recognise that ESG is increasingly important to all our stakeholders, not least our people and our customers.


Estimated reduction on tCO2e emissions across the group from last year*

c. 30,000


29.6 days

Average payment time across the group in the reporting period October 2020 to March 2021

*In line with the requirements of the Science Based Targets initiative we have reset the baseline as FY2020. Please see the table to see the detail and underlying assumptions and exclusions.